Exhibit 9-6
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT

question 116

Multiple Choice

Exhibit 9-6
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm. $\begin{array}{llcc} \text {LIFO reserve } & 60 \\ \text { Net plant, property, and equipment } & 1325 \\ \text { Other assets } &30 \\ \text {Goodwill } &325 \\ \text { Accumulated Goodwill amortized } & 65\\ \text { PV of Operating leases } & 140 \\ \text { Tax benefit from interest on expenses } & 10\\ \text {Tax benefit from interest on leases } &5 \\ \text { Taxes on non-operating income } &2 \\ \text {Implied interest on op. lease } & 9.5 \\ \text { Increase in LIFO reserve } & 12 \\ \text { Goodwill amortization } & 15 \\ \text { Operating profit } & 550\\ \text { Income tax expense } & 215 \\ \text { Net working capital } & 440 \\ \text { WACC } & 0.12\\\end{array}$

-Refer to Exhibit 9-6. Calculate the dollar cost of capital.

• A) 286.2
• B) 207
• C) 234.36
• D) 238.44
• E) 302.9

Understand the role of sustainable growth rate and its determinants in financial planning.

Identify the factors determining a firm's growth and their relation to financial policies.

Understand the concepts and applications of time studies in work measurement.

Identify the components that establish standard time for a task.

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Definitions:

Biological Model

An approach in psychology and medicine that attributes psychological disorders and diseases to biological factors.

Physiological Causes

Underlying biological reasons that affect the normal functioning of the body, which can lead to diseases or health issues.

Schizophrenia

A mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Biological Perspective

A lens in psychology that examines behavior and mental processes through their underlying biological and physiological processes.